Motorist Association Urges Investigation into Long-lasting Petrol Price Increases
NRMA spokesman Peter Khoury stated, “There is no justifiable reason for our biggest cities to be among the most expensive.”
A prominent Australian motorist association has requested the country’s consumer watchdog to examine prolonged petrol price cycles that are impacting the cost of living.
The National Roads and Motorists’ Association (NRMA) has published a recent analysis suggesting that fuel prices across Australia might have been artificially inflated in 2024.
As per NRMA data, Brisbane, Sydney, and Melbourne experienced some of the highest petrol prices in the country despite being the most populous cities.
In Brisbane, the average price for regular unleaded petrol was 195 cents (121 U.S. cents) per litre, closely following Canberra’s highest price at 196.3 cents per litre.
Motorists in Sydney and Melbourne paid averages of 191.1 cents and 190.3 cents per litre, respectively, while other capital cities saw prices ranging between 181 and 188 cents per litre.
Elsewhere in Australia, petrol prices hovered around 195 cents per litre.
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Due to these high petrol prices, the average household ended up spending $426 more on fuel compared to the previous year.
The NRMA attributed the consistently high prices to extended price cycles, where prices gradually decrease before sharply rising.
According to the Australian Competition and Consumer Commission (ACCC), Sydney and Melbourne have price cycles of approximately 6 weeks, while Brisbane’s cycles last about 7 weeks.
Adelaide follows a two-week cycle, and Perth’s cycles change weekly.
However, the NRMA discovered that the cycles were longer in 2024, reaching up to eight weeks in certain areas.
Longer Cycles Not Reasonable: NRMA
NRMA spokesperson Peter Khoury expressed that it is unreasonable for petrol prices to remain elevated for extended periods in cities like Sydney and Melbourne, where intense competition is expected.
He added, “There is no justifiable reason for our biggest cities to be among the most expensive.”
He emphasized, “Artificially inflated prices not only burden families but also have adverse effects on the Australian economy at a time when cost-of-living pressures and inflation are top concerns for policymakers and families.”
The NRMA has urged the ACCC to promptly investigate price cycles in Brisbane, Sydney, and Melbourne as part of their examinations into supermarket pricing and aviation fares.
While the ACCC is currently monitoring fuel prices and cycles, it does not regulate or set them.
Crude oil prices and fuel taxes accounted for 83 percent of the total cost for regular unleaded and diesel, while the remaining costs came from refining, transportation, wholesale and retail expenses.
Over the past decade, Australia’s reliance on fuel imports has grown significantly, with automotive fuel imports rising from 28.5 percent in 2010-2011 to 83.6 percent in 2023-2024.
During the same period, local fuel production decreased by 65.4 percent.
